----

| ARTICLE                                        | PAGE   |
|-----------------------------------------------------|-------------|
| PREAMBLE                                            | 1           |
| ARTICLE      I - DESCRIPTION AND CLASS              | 2           |
|                                                | 1.          | Description | 2 |
|                                                | 2.          | Basic      Dimensions And Principal Particulars Of The Vessel | 2 |
|                                                | 3.          | Classification,      Rules And Regulations | 3 |
|                                                | 4.          | Subcontracting | 3 |
|                                                | 5.          | Nationality      Of The Vessel | 3 |
| ARTICLE      II - CONTRACT PRICE                    | 4           |
| ARTICLE      III - ADJUSTMENT OF THE CONTRACT PRICE | 5           |
|                                                | 1.          | Delayed      Delivery | 5 |
|                                                | 2.          | Insufficient      Speed | 5 |
|                                                | 3.          | Excessive      Fuel Consumption | 6 |
|                                                | 4.          | Deadweight      Below Contract Requirements | 6 |
|                                                | 5.          | Effect      Of Cancellation | 8 |
| ARTICLE      IV - INSPECTION AND APPROVAL      | 9           |
|                                                | 1.          | Appointment      Of The Buyer’s Representative | 9 |
|                                                | 2.          | Authority      Of The Buyer’s Representative | 9 |
|                                                | 3.          | Approval      Of Drawings | 10 |
|                                                | 4.          | Salaries      And Expenses | 11 |
|                                                | 5.          | Responsibility      Of The Builder | 11 |
|                                                | 6.          | Responsibility      Of The Buyer | 11 |
| ARTICLE      V - MODIFICATIONS, CHANGES AND EXTRAS  | 13          |
|                                                | 1.          | How      Effected | 13 |
|                                                | 2.          | Substitution      Of Material | 13 |
|                                                | 3.          | Changes      In Rules And Regulations | 13 |
| ARTICLE      VI - TRIALS AND COMPLETION             | 15          |
|                                                | 1.          | Notice | 15 |
|                                                | 2.          | Weather      Condition | 15 |
|                                                | 3.          | How      Conducted | 15 |
|                                                | 4.          | Consumable      Stores | 15 |
|                                                | 5.          | Acceptance      Or Rejection | 16 |
|                                                | 6.          | Effect      Of Acceptance | 17 |
| ARTICLE      VII - DELIVERY                         | 18          |
|                                                | 1.          | Time      And Place | 18 |
|                                                | 2.          | When      And How Effected | 18 |

----

|                                                              | 3. | Documents      To Be Delivered To The Buyer                                         | 18 |
|-------------------------------------------------------------------|----|-------------------------------------------------------------------------------------|----|
|                                                              | 4. | Tender      Of The Vessel                                                           | 19 |
|                                                              | 5. | Title      And Risk                                                                 | 19 |
|                                                              | 6. | Removal      Of The Vessel                                                          | 19 |
| ARTICLE      VIII - DELAYS AND EXTENSIONS OF TIME (FORCE MAJEURE) | 21 |
|                                                              | 1. | Causes      Of Delay                                                                | 21 |
|                                                              | 2. | Notice      Of Delays                                                               | 21 |
|                                                              | 3. | Right      To Cancel For Excessive Delay                                            | 21 |
|                                                              | 4. | Definition      Of Permissible Delays                                               | 22 |
| ARTICLE      IX - WARRANTY OF QUALITY                             | 23 |
|                                                              | 1. | Guarantee      Of Material And Workmanship                                          | 23 |
|                                                              | 2. | Notice      Of Defects                                                              | 23 |
|                                                              | 3. | Remedy      Of Defects                                                              | 23 |
|                                                              | 4. | Extent      Of The Builder’s Liability                                        | 24 |
| ARTICLE      X - PAYMENT                                          | 27 |
|                                                              | 1. | Currency                                                                            | 27 |
|                                                              | 2. | Terms      Of Payment                                                               | 27 |
|                                                              | 3. | Demand      For Payment                                                             | 28 |
|                                                              | 4. | Method      Of Payment                                                              | 28 |
|                                                              | 5. | Refund      By The Builder                                                          | 29 |
|                                                              | 6. | Total      Loss                                                                     | 29 |
|                                                              | 7. | Discharge      Of Obligations                                                       | 29 |
|                                                              | 8. | Refund      Guarantee                                                               | 30 |
|                                                              | 9. | Performance      Guarantee                                                          | 30 |
| ARTICLE      XI - BUYER’S DEFAULT                           | 31 |
|                                                              | 1. | Definition      Of Default                                                          | 31 |
|                                                              | 2. | Effect      Of The Buyer’s Default On Or Before The Delivery Of The    Vessel | 31 |
| ARTICLE      XII - BUYER’S SUPPLIES                         | 34 |
|                                                              | 1. | Responsibility      Of The Buyer                                                    | 34 |
|                                                              | 2. | Responsibility      Of The Builder                                                  | 34 |
| ARTICLE      XIII - ARBITRATION                                   | 36 |
|                                                              | 1. | Appointment      Of The Arbitrator                                                  | 36 |
|                                                              | 2. | Laws      Applicable                                                                | 36 |
|                                                              | 3. | Proceedings                                                                         | 36 |
|                                                              | 4. | Alteration      Of Delivery Of The Vessel                                           | 37 |
| ARTICLE      XIV - SUCCESSORS AND ASSIGNS                         | 38 |
| ARTICLE      XV - TAXES AND DUTIES                                | 39 |

|                                                  | 1.  | Taxes                                          | 39 |
|-------------------------------------------------------|-----|------------------------------------------------|----|
|                                                  | 2.  | Duties                                         | 39 |
| ARTICLE      XVI - PATENTS, TRADEMARKS AND COPYRIGHTS | 40  |
|                                                  | 1.  | Patents,      Trademarks And Copyrights        | 40 |
|                                                  | 2.  | Rights      to the Specifications, Plans, etc. | 40 |
| ARTICLE      XVII - INTERPRETATION AND GOVERNING LAW  | 41  |
| ARTICLE      XVIII - NOTICE                           | 42  |
| ARTICLE      XIX - EFFECTIVENESS OF THIS CONTRACT     | 43  |
| ARTICLE      XX - EXCLUSIVENESS                       | 44  |
| EXHIBIT      “A”                          | A-1 |
| EXHIBIT      “B”                          | B-1 |

----

----

| 1.   | DESCRIPTION |
|----------------|-------------|

| 2.   | BASIC DIMENSIONS AND      PRINCIPAL PARTICULARS OF THEVESSEL |
|----------------|--------------------------------------------------------------|

|   | (a)   | The      basic dimensions and principal particulars of the VESSEL shall      be |
|--------|-----------------|---------------------------------------------------------------------------------|

|   | Length,      overall                                                       | about  | 289.0      M     |
|--------|----------------------------------------------------------------------------|--------|------------------|
|   |                                                                       |   |             |
|   | Length,      between perpendiculars                                        | about  | 279.0      M     |
|   |                                                                       |   |             |
|   | Breadth,      moulded                                                      | about  | 45.0      M      |
|   |                                                                       |   |             |
|   | Depth      to Upper Deck, moulded                                          | about  | 24.2      M      |
|   |                                                                       |   |             |
|   | Design      draft, moulded, in seawater of specific gravity of    1.025    | about  | 16.5      M      |
|   |                                                                       |   |             |
|   | Scantling      draft, moulded, in seawater of specific gravity of    1.025 | about  | 17.8      M      |
|   |                                                                       |   |             |
|   | Deadweight      on the above moulded design draft of 16.5 M                |   | 155,000      M/T |
|   |                                                                       |   |             |
|   | Deadweight      on the above moulded scantling draft of 17.8 M             | about  | 170,500      M/T |
|   |                                                                       |   |             |
|   | Cubic      capacity of cargo hold (incl. hatch coaming)                    | about  | 191,500      M3  |

|   | Main      propulsion engine                                                                                                                                                                                                                                             |   | MAN      B&W 6S70MC-CMCR:  18,660KW      x 91.0 RPMNCR:  16,794KW      x 87.9 RPM |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                    |   |                                                                                                      |
|   | Service      speed at 16.5 meters design draft at the condition of clean bottom and in      calm and deep sea with main engine developing a NCR of 16,794 KW with 15.0      per cent (15.0%) sea margin.                                                           |   | 15.4      Knots                                                                                      |
|   |                                                                                                                                                                                                                                                                    |   |                                                                                                      |
|   | Specific      fuel consumption of the main engine with tolerance of +5% applying I.S.O.      reference conditions to the result of official shop test at a MCR of      18,660 KW using marine diesel oil having lower calorific value of 10,200      Kcal per Kg.  |   | 169.0      gr/KW.HR                                                                                  |

----

|   | (b)   | The      dimensions may be slightly modified by the BUILDER, who also reserves the      right to make changes to the SPECIFICATIONS and the PLAN if found      necessary to suit the local conditions and facilities of the SHIPYARD, the      availability of materials and equipment, the introduction of improved      production methods or otherwise, subject to the approval of the BUYER      which the BUYER shall not withholdunreasonably. |
|--------|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | CLASSIFICATION, RULES      AND REGULATIONS |
|----------------|--------------------------------------------|

|   | (a)   | The      VESSEL shall be built in compliance with the rules and regulations of Det      Norske Veritas (hereinafter called the “CLASSIFICATION SOCIETY”), in force      as of the date of this CONTRACT, to be classed and registered as +1A1,      Bulk Carrier ESP, CSR, BC-A, Holds 2, 4, 6 and 8 may be empty, E0, BIS,      GRAB(20), ES(S) and also to comply with the rules and regulations, in      force as of the date of this CONTRACT, as described in the      SPECIFICATIONS, |
|--------|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)   | The      BUILDER shall arrange with the CLASSIFICATION SOCIETY for the assignment      by the CLASSIFICATION SOCIETY of representative(s) to the VESSEL during      construction. All fees and charges incidental to classification of the      VESSEL in compliance with the above specified rules, regulations and      requirements of this CONTRACT shall be for the account of the      BUILDER. |
|--------|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c)   | The      decision of the CLASSIFICATION SOCIETY as to whether the VESSEL complies      with the regulations of the CLASSIFICATION SOCIETY shall be final and      binding upon the BUILDER and theBUYER. |
|--------|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | SUBCONTRACTING |
|----------------|----------------|

| 5.   | NATIONALITY OF THE      VESSEL |
|----------------|--------------------------------|

----

----

| 1.   | DELAYED      DELIVERY |
|----------------|-----------------------|

|   | (a)   | No      adjustment shall be made and the CONTRACT PRICE shall remain unchanged for      the first thirty (30) days of the delay in delivery of the VESSEL [ending      as of 12 o’clock midnight Korean Standard Time on the thirtieth (30th) day      of delay] beyond the Delivery Date calculated as provided in Article      VII.1. hereof. |
|--------|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)   | If      delivery of the VESSEL is delayed more than thirty (30) days beyond the      date upon which the delivery is due from the BUILDER under the terms of      this CONTRACT, then, beginning at midnight of the thirtieth (30th) day      after such due date, the CONTRACT PRICE of the VESSEL shall be reduced by      U.S. Dollars Twenty Five Thousand (US$25,000.-) for each full day of      delay. |
|--------|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   | However,      unless the parties agree otherwise, the total amount of deduction from the      CONTRACT PRICE shall not exceed the amount due to cover the delay of one      hundred and eighty (180) days after thirty (30) days of the delay in      delivery of the VESSEL at the rate of deduction as specified      hereinabove.  |
|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c)   | But,      if the delay in delivery of the VESSEL continues for a period of more than      two hundred and ten (210) days beyond the date upon which the delivery is      due from the BUILDER under the terms of this CONTRACT then, in such event,      and after such period has expired, the BUYER may, at its option, cancel      this CONTRACT by serving upon the BUILDER a notice of cancellation by      facsimile to be confirmed by a registered letter via airmail directed to      the BUILDER at the address given in this CONTRACT. Such cancellation shall      be effective as of the date the notice thereof is received by the BUILDER.      If the BUYER has not served the notice of cancellation after the      aforementioned two hundred and ten (210) days delay in delivery, the      BUILDER may demand the BUYER to make an election in accordance with      Article VIII.3. hereof, |
|--------|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d)   | For      the purpose of this Article, the delivery of the VESSEL shall be deemed to      be delayed when and if the VESSEL, after taking into full account      extension of the Delivery Date or permissible delays as provided in      Article V-3, VI-2, VIII-1, XI-2 or elsewhere in this CONTRACT, is      delivered beyond the date upon which delivery would then be due under the      terms of this CONTRACT. |
|--------|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | INSUFFICIENT      SPEED |
|----------------|-------------------------|

|   | (a)   | The      CONTRACT PRICE of the VESSEL shall not be affected or changed, if the      actual speed, as determined by trial runs more fully described in Article      VI hereof, is less than the speed required under the terms of this      CONTRACT and the SPECIFICATIONS provided such deficiency in actual speed      is not more than three-tenths (3/10) of a knot below the guaranteed      speed. |
|--------|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)   | However,      commencing with and including a deficiency of more than three-tenths      (3/10) of a knot in actual speed below the speed guaranteed under this      CONTRACT, the CONTRACT PRICE shall be reduced for each full one tenth      (1/10) of a knot in excess of the said three tenths (3/10) of a knot of      deficiency in speed [fractions of less than one-tenth (1/10) of a knot      shall be regarded as a full one-tenth (1/10) of a knot] as      follows. |
|--------|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | For      three tenths (3/10) of a knot           | a      total sum of US$60,000.-  |
|--------|--------------------------------------------------|----------------------------------|
|   | For      four tenths (4/10) of a knot            | a      total sum of US$120,000.- |
|   | For      five tenths (5/10) of a knot            | a      total sum of US$180,000.- |
|   | For      six tenths (6/10) of a knot             | a      total sum of US$240,000.- |
|   | For      seven tenths (7/10) of a knot           | a      total sum of US$300,000.- |
|   | For      eight tenths (8/10) of a knot           | a      total sum of US$360,000.- |
|   | For      nine tenths (9/10) of a knot            | a      total sum of US$420,000.- |
|   | For      one (1) knot                            | a      total sum of US$480,000.- |
|   |                                             |                             |
|   | The      above figures are not cumulative.  |                             |

|   | However, unless the      parties agree otherwise, the total amount of reduction from the CONTRACT      PRICE shall not exceed the amount due to cover the deficiency of one (1)      full knot below the guaranteed speed at the rate of reduction as specified      above.  |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c)   | If      the deficiency in actual speed of the VESSEL is more than one (1) full      knot below the speed guaranteed under this CONTRACT, then the BUYER, at      its option, may, subject to the BUILDER’s right to effect alterations or      corrections as provided in Article VI.5. hereof, cancel this CONTRACT or      may accept the VESSEL at a reduction in the CONTRACT PRICE as above      provided for one (1) full knot of deficiency  only. |
|--------|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | EXCESSIVE FUEL      CONSUMPTION |
|----------------|---------------------------------|

|   | (a)   | The      CONTRACT PRICE shall not be affected or changed by reason of the fuel      consumption of the VESSEL’s main engine, as determined by the engine      manufacturer’s shop trial as per the SPECIFICATIONS being more than the      guaranteed fuel consumption of the VESSEL’s main engine, if such excess is      not more than five per cent (5%) over the guaranteed fuel      consumption. |
|--------|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)   | However,      as for the excess of more than five per cent (5%) in the actual fuel      consumption over the guaranteed fuel consumption of the VESSEL’s main      engine, the CONTRACT PRICE shall be reduced by U.S. Dollars Seventy      Thousand (US$70,000.-) for each full one per cent (1%) increase in fuel      consumption in excess of the said five per cent (5%) increase in fuel      consumption [fractions of less than one per cent (1%) shall be regarded as      a full one per cent (1%)]. However, unless the parties agree otherwise,      the total amount of reduction from the CONTRACT PRICE shall not exceed the      amount due to cover the excess of ten per cent (10%) over the guaranteed      fuel consumption of the VESSEL’s main engine at the rate of reduction as      specified above. |
|--------|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c)   | If      such actual fuel consumption exceeds the guaranteed fuel consumption of      the VESSEL’s main engine by more than ten per cent (10%), the BUYER, at      its option, may, subject to the BUILDER’s right to effect alterations or      corrections as specified in Article VI.5. hereof, cancel this CONTRACT or      may accept the VESSEL at a reduction in the CONTRACT PRICE as above      provided for the ten per cent (10%) increase  only. |
|--------|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | DEADWEIGHT BELOW      CONTRACT REQUIREMENTS |
|----------------|---------------------------------------------|

|   | (a)   | The      CONTRACT PRICE of the VESSEL shall not be affected or changed, if actual      deadweight, determined as provided in this CONTRACT and the      SPECIFICATIONS, is below the deadweight of 170,500 metric tons on the      moulded scantling draft of 17.8 meters required by this CONTRACT and the      SPECIFICATIONS by an amount of 1,500 metric tons or less. However, should      the deficiency in the actual deadweight of the VESSEL be more than 1,500      metric tons below the said required deadweight, then the CONTRACT PRICE of      the VESSEL shall be reduced for each full one (1) metric ton [fractions of      less than one (1) metric ton shall be disregarded] of decreased deadweight      in excess of 1,500 metric tons by the sum of U.S. Dollars Five Hundred      (US$500.-) per metric ton. |
|--------|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | However,      unless the parties agree otherwise, the total amount of deduction from the      CONTRACT PRICE shall not exceed the amount due to cover the deficiency of      3,500 metric tons below the said required deadweight      hereinabove.  |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)   | If      the deficiency in the deadweight of the VESSEL is more than 3,500 metric      tons below the said required deadweight, then the BUYER, at its option,      may, subject to the BUILDER’s right to effect alterations or corrections      without the BUYER’s prior consent as specified in Article VI.5. hereof,      cancel this CONTRACT or may accept the VESSEL at a reduction in the      CONTRACT PRICE as above provided for 3,500 metric tons of deficiency      only. |
|--------|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 1.   | APPOINTMENT OF THE      BUYER’S REPRESENTATIVE |
|----------------|------------------------------------------------------|

| 2.   | AUTHORITY OF THE      BUYER’S REPRESENTATIVE |
|----------------|----------------------------------------------------|

----

| 3.   | APPROVAL OF      DRAWINGS |
|----------------|---------------------------|

|   | (a)   | The      BUILDER shall submit to the BUYER three (3) copies of each of the plans      and drawings to be submitted to the BUYER for its approval at its address      as set forth in Article XVIII hereof. The BUYER shall, within fourteen      (14) days after receipt thereof return to the BUILDER one (1) copy of such      plans and drawings with the approval or comments, if any, of the BUYER. A      list of the plans and drawings to be so submitted to the BUYER shall be      mutually agreed upon between the partieshereto. |
|--------|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)   | When      and if the BUYER’S REPRESENTATIVE shall have been sent by the BUYER to the      SHIPYARD in accordance with Paragraph 1 of this Article, the BUILDER may      submit the remainder, if any, of the plans and drawings in the agreed      list, to the BUYER’S REPRESENTATIVE for his approval, unless otherwise      agreed upon between the partieshereto. |
|--------|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | The      BUYER’S REPRESENTATIVE shall, within seven (7) days after receipt thereof,      return to the BUILDER one (1) copy of such plans and drawings with his      approval or comments written thereon, if any. Approval by the BUYER’S      REPRESENTATIVE of the plans and drawings duly submitted to him shall be      deemed to be the approval by the BUYER for all purposes of this      CONTRACT,  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c)   | In      the event that the BUYER or the BUYER’S REPRESENTATIVE shall fail to      return the plans and drawings to the BUILDER within the time limit as      hereinabove provided, such plans and drawings shall be deemed to have been      automatically approved without any comment. In the event the plans and      drawings submitted by the BUILDER to the BUYER or the BUYER’S      REPRESENTATIVE in accordance with this Article do not meet with the      BUYER’s or the BUYER’S REPRESENTATIVE’s approval, the matter may be      submitted by either party hereto for determination pursuant to Article      XIII hereof. If the BUYER’s comments on the plans and drawings that are      returned to the BUILDER by the BUYER within the said time limit are not      clearly specified or detailed, the BUILDER shall be entitled to place its      own interpretation on such comments in implementing  them. |
|--------|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.   | SALARIES AND      EXPENSES |
|----------------|----------------------------|

| 5.   | RESPONSIBILITY OF THE      BUILDER |
|----------------|------------------------------------|

|   | (a)   | The      BUILDER shall provide the BUYER’S REPRESENTATIVE and his assistants free      of charge with suitably furnished office space at, or in the immediate      vicinity of, the SHIPYARD together with access to telephone and facsimile      facilities as may be necessary to enable the BUYER’S REPRESENTATIVE and      his assistants to carry out their work under this CONTRACT. However, the      BUYER shall pay for the telephone or facsimile facilities used by the      BUYER’S REPRESENTATIVE or hisassistants. |
|--------|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | The      BUILDER, its employees, agents and subcontractors, during its working      hours until delivery of the VESSEL, shall arrange for them to have free      and ready access to the VESSEL, her equipment and accessories, and to any      other place (except the areas controlled for the purpose of national      security) where work is being done, or materials arc being processed or      stored in connection with the construction of the VESSEL including the      premises of sub-contractors.  |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | The      BUYER’S REPRESENTATIVE or his assistants or employees shall observe the      work’s rules, regulations and the guidances prevailing at the BUILDER’s      and its sub-contractor’s premises. The BUILDER shall promptly provide to      the BUYER’S REPRESENTATIVE and/or his assistants and shall ensure that its      sub-contractors shall promptly provide all such information as he or they      may reasonably request in connection with the construction of the VESSEL      and her engines, equipment andmachinery.  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)   | The      BUYER’S REPRESENTATIVE and his assistants shall at all times remain the      employees of the BUYER. The BUILDER shall not be liable to the BUYER or      the BUYER’S REPRESENTATIVE or to his assistants or to the BUYER’s      employees or agents for personal injuries, including death, during the      time they, or any of them, are on the VESSEL, or within the premises of      either the BUILDER or its sub-contractors, or are otherwise engaged in and      about the construction of the VESSEL, unless, however, such personal      injuries, including death, are caused by the gross negligence of the      BUILDER, its sub-contractors, or its or their employees or agents. The      BUILDER shall not be liable to the BUYER for damages to, or destruction of      property of the BUYER or of the BUYER’S REPRESENTATIVE or his assistants      or the BUYER’s employees or agents, unless such damages, loss or      destruction is caused by the gross negligence of the BUILDER, its      sub-contractors, or its or their employees or  agents. |
|--------|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | RESPONSIBILITY OF THE      BUYER |
|----------------|----------------------------------|

----

----

| 1.   | HOW      EFFECTED |
|----------------|-------------------|

| 2.   | SUBSTITUTION OF      MATERIAL |
|----------------|-------------------------------|

| 3.   | CHANGES IN RULES AND      REGULATIONS |
|----------------|---------------------------------------|

----

|   | (a)   | any      increase or decrease in the CONTRACT PRICE of the VESSEL that is      occasioned by such compliance ; |
|--------|-----------------|----------------------------------------------------------------------------------------------------------------|

|   | (b)   | any      extension or advancement in the Delivery Date of the VESSEL that is      occasioned by such compliance ; |
|--------|-----------------|-------------------------------------------------------------------------------------------------------------------|

|   | (c)   | any      increase or decrease in the deadweight and/or cubic capacity of the      VESSEL, if such compliance results in any increase or reduction in the      deadweight and/or cubic capacity ; |
|--------|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d)   | adjustment      of the speed requirements if such compliance results in any increase or      reduction in the speed ; and |
|--------|-----------------|---------------------------------------------------------------------------------------------------------------------------|

|   | (e)   | any      other alterations in the terms of this CONTRACT or of the SPECIFICATIONS      or the PLAN or both, if such compliance makes such alterations of the      terms necessary. |
|--------|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.   | NOTICE |
|----------------|--------|

| 2.   | WEATHER      CONDITION |
|----------------|------------------------|

| 3.   | HOW      CONDUCTED |
|----------------|--------------------|

| 4.   | CONSUMABLE      STORES |
|----------------|------------------------|

----

| 5.   | ACCEPTANCE OR      REJECTION |
|----------------|------------------------------|

|   | (a)   | If,      during any sea trial, any breakdown occurs entailing interruption or      irregular performance which can be repaired on board, the trial shall be      continued after such repairs and be valid in all  respects. |
|--------|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)   | However,      if, during or after the trial run, it becomes apparent that the VESSEL or      any part of her equipment requires alterations or corrections which but      for this provision would or might entitle the BUYER to cancel this      CONTRACT, the BUILDER shall notify the BUYER promptly in writing or by      facsimile to such effect and shall simultaneously advise the BUYER of the      estimated additional time required for the necessary alterations or      corrections to be made. |
|--------|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | The      BUYER shall, within three (3) days of receipt from the BUILDER of notice      of completion of such alterations or corrections and after such further      trials or tests as necessary, notify the BUILDER in writing or by      facsimile confirmed in writing of its acceptance, qualified acceptance or      rejection of the VESSEL, all in accordance with the SPECIFICATIONS, the      PLAN and this CONTRACT, and shall not be entitled to reject the VESSEL on      such grounds until such time.  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c)   | Save      as above provided, the BUYER shall, within two (2) days after completion      of the trial run, notify the BUILDER in writing or by facsimile confirmed      in writing of its acceptance of the VESSEL or of the details in respect of      which the VESSEL does not conform to the SPECIFICATIONS or this      CONTRACT. |
|--------|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | If      the BUILDER is in agreement with the BUYER’s determinations as to      non-conformity, the BUILDER shall make such alterations or changes as may      be necessary to correct such non-conformity and shall prove the fulfilment      of this CONTRACT and the SPECIFICATIONS by such tests or trials as may be      necessary.  |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | The      BUYER shall, within two (2) days after completion of such tests and/or      trials, notify the BUILDER in writing or by facsimile confirmed in writing      of its acceptance or rejection of theVESSEL.  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d)   | However,      the BUYER shall not be entitled to reject the VESSEL by reason of any      minor or insubstantial items judged from the point of view of standard      shipbuilding and shipping practice as not being in conformity with the      SPECIFICATIONS, but, in that case, the BUILDER shall not be released from      the obligation to correct and/or remedy such minor or insubstantial items      as soon as practicable after the delivery of the  VESSEL. |
|--------|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6.   | EFFECT OF      ACCEPTANCE |
|----------------|---------------------------|

----

| 1.   | TIME AND      PLACE |
|----------------|---------------------|

| 2.   | WHEN AND HOW      EFFECTED |
|----------------|----------------------------|

| 3.   | DOCUMENTS TO BE      DELIVERED TO THE BUYER |
|----------------|---------------------------------------------|

|   | (a)   | PROTOCOL      OF TRIALS of the VESSEL made pursuant to this CONTRACT and the      SPECIFICATIONS, |
|--------|-----------------|---------------------------------------------------------------------------------------------------|

|   | (b)   | PROTOCOL      OF INVENTORY of the equipment of the VESSEL, including spare parts, all as      specified in the SPECIFICATIONS, |
|--------|-----------------|--------------------------------------------------------------------------------------------------------------------------------|

|   | (c)   | PROTOCOL      OF DEADWEIGHT DETERMINATION AND INCLINING  EXPERIMENT. |
|--------|-----------------|----------------------------------------------------------------------|

|   | (d)   | PROTOCOL      OF STORES OF CONSUMABLE NATURE, such as all fuel oil and fresh water      remaining in tanks if its cost is charged to the BUYER under Article VI.4.      hereof, |
|--------|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e)   | DRAWINGS      AND PLANS pertaining to the VESSEL as stipulated in the SPECIFICATIONS,      which shall be furnished to the BUYER at no additional    cost, |
|--------|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f)   | ALL      CERTIFICATES required to be furnished upon delivery of the VESSEL pursuant      to this CONTRACT, the SPECIFICATIONS and the customary shipbuilding      practice, including |
|--------|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i)   | Classification      Certificate |
|--------|-----------------|---------------------------------|

|   | (ii)   | Safety      Construction Certificate |
|--------|------------------|--------------------------------------|

|   | (iii)   | Safety      Equipment Certificate |
|--------|-------------------|-----------------------------------|

|   | (iv)   | Safety      Radio Certificate |
|--------|------------------|-------------------------------|

----

|   | (v)   | International      Loadline Certificate |
|--------|-----------------|-----------------------------------------|

|   | (vi)   | International      Tonnage Certificate |
|--------|------------------|----------------------------------------|

|   | (vii)   | BUILDER’s      Certificate |
|--------|-------------------|----------------------------------|

|   | (viii)   | De-ratting      Exemption Certificate |
|--------|--------------------|---------------------------------------|

|   | (ix)   | International      Oil Pollution PreventionCertificate |
|--------|------------------|--------------------------------------------------------|

|   | (x)   | Deadweight      Certificate |
|--------|-----------------|-----------------------------|

|   | (xi)   | Certificate      for Life Boats and Life SavingEquipments |
|--------|------------------|-----------------------------------------------------------|

|   |   | However,      it is agreed by the parties that if the Classification Certificate and/or      other certificates are not available at the time of delivery of the      VESSEL, provisional certificates shall be accepted by the BUYER, provided      that the BUILDER shall furnish the BUYER with formal certificates as      promptly as possible after such formal certificates have been      issued.  |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g)   | DECLARATION      OF WARRANTY of the BUILDER that the VESSEL is delivered to the BUYER free      and clear of any liens, claims, mortgages, or other encumbrances upon the      BUYER’S title thereto, and in particular, that the VESSEL is absolutely      free of all burdens in the nature of imposts, taxes, or charges imposed by      the prefecture or country of the port of delivery, as well as of all      liabilities of the BUILDER to its sub-contractors and employees and of all      liabilities arising from the operation of the VESSEL in trial runs, or      otherwise, prior to delivery except as otherwise provided under this      CONTRACT. |
|--------|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h)   | COMMERCIAL      INVOICE. |
|--------|-----------------|--------------------------|

|   | (i)   | BILL      OF SALE. |
|--------|-----------------|--------------------|

| 4.   | TENDER OF THE      VESSEL |
|----------------|---------------------------|

| 5.   | TITLE AND      RISK |
|----------------|---------------------|

| 6.   | REMOVAL OF THE      VESSEL |
|----------------|----------------------------|

----

----

| 1.   | CAUSES OF      DELAY |
|----------------|----------------------|

| 2.   | NOTICE OF      DELAYS |
|----------------|-----------------------|

| 3.   | RIGHT TO CANCEL FOR      EXCESSIVE DELAY |
|----------------|------------------------------------------|

----

|   | (a)   | Such      future date shall become the contractual delivery date for the purposes of      this CONTRACT and shall be subject to extension by reason of permissible      delays as herein provided, and |
|--------|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)   | If      the VESSEL is not delivered by such revised contractual delivery date (as      extended by reason of permissible delays), the BUYER shall have the same      right of cancellation upon the same terms as provided in the above and      Article III. 1. |
|--------|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | DEFINITION OF      PERMISSIBLE DELAYS |
|----------------|---------------------------------------|

----

| 1.   | GUARANTEE OF MATERIAL      AND WORKMANSHIP |
|----------------|--------------------------------------------|

| 2.   | NOTICE OF      DEFECTS |
|----------------|------------------------|

| 3.   | REMEDY OF      DEFECTS |
|----------------|------------------------|

|   | (a)   | The      BUILDER shall remedy, at its expense, any defects, against which the      VESSEL is guaranteed under this Article, by making all necessary and      reasonably practicable repairs or replacements at the SHIPYARD or      elsewhere as provided for in (b)hereinbelow. |
|--------|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | In      such case, the VESSEL shall be taken at the BUYER’s cost and      responsibility to the place selected, ready in all respects for such      repairs or replacements and in any event, the BUILDER shall not be      responsible for towage, dockage, wharfage, port charges and anything else      incurred for the BUYER’s getting and keeping the VESSEL ready for such      repairing or replacing.  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b)   | However,      if it is impractical (which shall include, but not be limited to, an      emergency) to bring the VESSEL to the SHIPYARD, the BUYER may cause the      necessary repairs or replacements to be made elsewhere which is deemed by      the BUYER with the consent of the BUILDER which shall not be unreasonably      withheld, to be suitable for the purpose, provided that, in such event,      the BUILDER may forward or supply replacement parts or materials under the      terms described in (c) hereinbelow, unless forwarding or supplying thereof      under the terms described in (c) hereinbelow would impair or delay the      operation or working schedule of the VESSEL. In the event that the BUYER      proposes to cause the necessary repairs or replacements to be made to the      VESSEL at any shipyard or works other than the SHIPYARD, the BUYER shall      first (but in all events as soon as reasonably possible) give the BUILDER      notice in writing or by e-mail or facsimile of the time and place such      repairs will be made, and if the VESSEL is not thereby delayed, or her      operation or working schedule is not thereby impaired, the BUILDER shall      have the right to verify by its own representative(s) the nature and      extent of the defects complained of. The BUILDER shall, in such case,      promptly advise the BUYER by e-mail or facsimile, after such examination      has been completed, of its acceptance or rejection of the defects as ones      that are covered by the guarantee herein provided. Upon the BUILDER’s      acceptance of the defects as justifying remedy under this Article, or upon      award of the arbitration so determining, the BUILDER shall compensate the      BUYER an amount equal to the reasonable cost of making the same repairs or      replacements at the SHIPYARD. |
|--------|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c)   | In      the event that it is necessary for the BUILDER to forward a replacement      for a defective part under this guarantee, replacement parts shall be      shipped to the BUYER under the terms of F.O.B. port of the country where      they are to be purchased. |
|--------|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d)   | The      BUILDER reserves the option to retrieve, at the BUILDER’s cost, any of the      replaced equipment/parts in case defects are remedied in accordance with      the provisions in this Article. |
|--------|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e)   | Any      dispute under this Article shall be referred to arbitration in accordance      with the provisions of Article XIIIhereof. |
|--------|-----------------|------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | EXTENT OF THE      BUILDER’S LIABILITY |
|----------------|----------------------------------------------|

|   | (a)   | After      delivery of the VESSEL the responsibility of the BUILDER in respect of      and/or in connection with the VESSEL and/or this CONTRACT shall be limited      to the extent expressly provided in the Paragraph of this Article. Except      as expressly provided in the foregoing Paragraph, in no circumstances and      on no ground whatsoever shall the BUILDER have any responsibility or      liability whatsoever or howsoever arising in respect of or in connection      with the VESSEL or this CONTRACT after the delivery of the VESSEL.      Further, but without in any way limiting the generality of the foregoing,      the BUILDER shall have no liability or responsibility whatsoever or      howsoever arising for or in connection with any consequential or special      losses, damages or expenses (including but not limited to loss of time,      loss of profit or earnings or demurrage directly or indirectly caused),      any pecuniary loss or expense, any liability to any third party or any      fine, compensation, penalty or other payment or sanction incurred by or      imposed upon the BUYER or any other party whatsoever in relation to or in      connection with this CONTRACT or theVESSEL. |
|--------|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)   | The      BUILDER shall be under no obligation with respect to defects in respect of      which the BUILDER has not received notice in accordance with Paragraph 2      of this Article by the expiry date of the guarantee specified in Paragraph      1, nor in any event shall the BUILDER be liable for any worsening of the      defects after the expiry date of theguarantee. |
|--------|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c)   | The      BUILDER shall under no circumstances be liable for defects in the VESSEL      or any part of equipment thereof caused by perils of the sea, rivers or      navigations, or by normal wear and tear, overloading, improper loading or      stowage, corrosion of the materials, fire, accidents at sea or elsewhere,      or by incompetence, mismanagement, negligence or wilful neglect or any      alteration or addition on the part of the BUYER, its employees or agents      or any other person on or doing work on the VESSEL, including the VESSEL’s      officers, crew and passengers. Likewise, the BUILDER shall not be liable      for defects in the VESSEL or any part of equipment thereof that are due to |
|--------|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | repairs      carried out by any other than the BUILDER or which have not been carried      out in accordance with the procedure set out in Paragraph 3 (b) of      this Article,  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (d)   | The      BUILDER shall not be obliged to repair, not be liable for, damage to the      VESSEL or any part of the equipment thereof, which after delivery of the      VESSEL, is caused other than by the defects of the nature specified in      this Article. The guarantees contained as hereinabove in this Article      replace and exclude any other liability, guarantee, warranty and/or      condition imposed or implied by statute, common law, custom, contract      (including this CONTRACT) or otherwise on the part of the BUILDER by      reason of the construction and sale of the VESSEL for and to the BUYER or      for any other reason whatsoever. |
|--------|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.   | CURRENCY |
|----------------|----------|

| 2.   | TERMS OF      PAYMENT |
|----------------|-----------------------|

|   | (a)   | First      Instalment |
|--------|-----------------|-----------------------|

|   |   | Twenty      per cent (20%) of the CONTRACT PRICE amounting to U.S. Dollars Sixteen      Million Two Hundred Thousand (US$16,200,000.-) shall be paid within five      (5) business days after receipt by the BUYER’s bank of a tested telex or a      SWIFT confirmation of the refund guarantor that the Refund Guarantee      mentioned in Paragraph 8 of this Article has been  issued.  |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | Under      this CONTRACT, in counting the business days, only Saturdays and Sundays      are excepted. When a due date falls on a day when banks are not open for      business in New York, N.Y., U.S.A. or Oslo, Norway, such due date shall      fall due upon the first business day next  following.  |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)   | Second      Instalment |
|--------|-----------------|------------------------|

|   |   | Twenty      per cent (20%) of the CONTRACT PRICE amounting to U.S. Dollars Sixteen      Million Two Hundred Thousand (US$16,200,000.-) shall be paid within five      (5) business days of receipt by the BUYER of an e-mail or a facsimile      advice from the BUILDER that the steel cutting of the VESSEL has been      commenced.  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c)   | Third      Instalment |
|--------|-----------------|-----------------------|

|   |   | Twenty      per cent (20%) of the CONTRACT PRICE amounting to U.S. Dollars Sixteen      Million Two Hundred Thousand (US$16,200,000.-) shall be paid within five      (5) business days of receipt by the BUYER of an e-mail or facsimile advice      from the BUILDER that the first block of the keel has been      laid.  |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d)   | Fourth      Instalment |
|--------|-----------------|------------------------|

|   |   | Twenty      per cent (20%) of the CONTRACT PRICE amounting to U.S. Dollars Sixteen      Million Two Hundred Thousand (US$16,200,000,-) shall be paid within five      (5) business days of receipt by the BUYER of an e-mail or a facsimiled      advice from the BUILDER that the launching of the VESSEL has been      completed.  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e)   | Fifth      Instalment |
|--------|-----------------|-----------------------|

|   |   | Twenty      per cent (20%) of the CONTRACT PRICE amounting to U.S. Dollars Sixteen      Million Two Hundred Thousand (US$16,200,000.-) plus or minus any increase      or decrease due to modifications and/or adjustment, if any, arising prior      to delivery of the VESSEL of the CONTRACT PRICE under Articles III and V      of this CONTRACT shall be paid to the BUILDER concurrently with the      delivery of the VESSEL. (The date stipulated for payment of each of the      five instalments mentioned above is hereinafter in this Article and in      Article XI referred to as the “DUE DATE” of that    instalment).  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 3.   | DEMAND FOR      PAYMENT |
|----------------|-------------------------|

| 4.   | METHOD OF      PAYMENT |
|----------------|------------------------|

|   | (a)   | All      the pre-delivery payments and the payment due on delivery in settlement of      the CONTRACT PRICE as provided for in Paragraph 2 of this Article shall be      made in U.S. Dollars on or before the DUE DATE thereof by telegraphic      transfer as follows; |
|--------|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i)   | The      payment of the first, second, third and fourth instalments shall be made      to the account of XXXXXX Bank (hereinafter called the “BUILDER’s Bank”)      (Account No.: XXX-XXXXXX) with XXXXXX Bank as described in the following      reference in favor of the BUILDER, as designated and notified by the      BUILDER at least three (3) business days prior to the DUE      DATE. |
|--------|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Reference to the      BUILDER’s Bank                                                                                                                                                                                                                      |   |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   |                                                                                                                                                                                                                                                            |   |
|   | Name      : XXXXXX BankAddress      : XXXXXXXXXXTelex      Number:  XXXXXXXXXTelefax      Number:  XXXXXXXXSwift      Code:  XXXXXXXXXXXAccount      Number:  XXX-XXXXXXThrough      Bank:  XXXXXX  Bank |   |

|   | (ii)   | The      fifth instalment as provided for in Paragraph 2.(e) of this Article shall      be deposited at the account of the BUILDER’s Bank or, if the BUILDER      requires, at the account of the BUILDER with any other bank by telegraphic      transfer remittance at least three (3) business days prior to the      scheduled delivery date of the VESSEL notified by the BUILDER, with      instructions that the said instalment is payable to the BUILDER against      presentation by the BUILDER to the BUILDER’s Bank or any other bank, as      the case may be, of a duplicate original copy of the PROTOCOL OF DELIVERY      AND ACCEPTANCE of the VESSEL signed by the BUILDER and the      BUYER. |
|--------|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)   | Simultaneously      with each of such payments, the BUYER shall advise the BUILDER of the      details of the payments by e-mail or facsimile and at the same time, the      BUYER shall cause the BUYER’s remitting Bank to advise the BUILDER’s Bank      of the details of such payments by authenticated bank cable or      telex. |
|--------|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5.   | REFUND BY THE      BUILDER |
|----------------|----------------------------|

| 6.   | TOTAL      LOSS |
|----------------|-----------------|

|   | (a)   | to      build another vessel in place of the VESSEL so lost and deliver it under      this CONTRACT to the BUYER, provided that the parties hereto shall have      agreed in writing to a reasonable cost and time for the construction of      such vessel in place of the lost VESSEL;or |
|--------|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)   | to      refund to the BUYER the full amount of the total sums paid by the BUYER to      the BUILDER under the provisions of Paragraph 2 of this Article together      with interest thereon at the rate of six per cent (6%) per annum from the      date following the date of receipt by the BUILDER of such pre-delivery      instalment(s) to the date of payment by the BUILDER to the BUYER of the      refund. |
|--------|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | If      the parties hereto fail to reach such agreement within one (1) month after      the VESSEL is determined to be a total loss or constructive total loss,      the provisions of (b) hereinabove shall be  applied.  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | DISCHARGE OF      OBLIGATIONS |
|----------------|-------------------------------|

----

| 8.   | REFUND      GUARANTEE |
|----------------|-----------------------|

| 9.   | PERFORMANCE      GUARANTEE |
|----------------|----------------------------|

----

| 1.   | DEFINITION OF      DEFAULT |
|----------------|----------------------------|

|   | (a)   | If      the first, second, third, or fourth instalment is not paid to the BUILDER      within respective DUE DATE of such instalments;  or |
|--------|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)   | If      the fifth instalment is not deposited at the account of the BUILDER’s Bank      or at the account of the BUILDER with any other bank designated by the      BUILDER in accordance with Article X.4. (a)(ii) hereof or if the said      fifth instalment deposit is not released to the BUILDER against      presentation by the BUILDER of a duplicate original copy of the PROTOCOL      OF DELIVERY AND ACCEPTANCE; or |
|--------|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c)   | If      the BUYER fails to take delivery of the VESSEL when the VESSEL is duly      tendered for delivery by the BUILDER under the provisions of Article VII      hereof; or |
|--------|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d)   | If      an order or an effective resolution shall be passed for winding up of the      BUYER (except for the purpose of reorganization, merger or amalgamation);      or |
|--------|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e)   | If      the BUYER fails to be in punctual, due and full compliance with any of its      obligations under this CONTRACT. |
|--------|-----------------|--------------------------------------------------------------------------------------------------------------------------|

| 2.   | EFFECT OF THE BUYER’S      DEFAULT ON OR BEFORE THE DELIVERY OF THE  VESSEL |
|----------------|-----------------------------------------------------------------------------------|

|   | (a)   | The      DELIVERY DATE of the VESSEL shall be extended automatically for the actual      period of such default and the BUILDER shall not be obliged to pay any      liquidated damages for the delay in delivery of the VESSEL caused      thereby. |
|--------|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)   | The      BUYER shall pay to the BUILDER interest at the rate of six per cent (6%)      per annum in respect of the instalment(s) in default from the respective      DUE DATE to the date of actual receipt by the BUILDER of the full amount      of such instalment(s). |
|--------|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c)   | If      the BUYER is in default in payment of any of the instalment(s) due and      payable prior to or simultaneously with the delivery of the VESSEL, the      BUILDER shall, in writing or by facsimile, notify the BUYER to that      effect, and the BUYER shall, upon receipt of such notification, forthwith      acknowledge in writing or by facsimile to the BUILDER that such      notification has been received. |
|--------|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d)   | If      any of the BUYER’s default continues for a period of seven (7) days after      the BUILDER’s notification to the BUYER of such default, the BUILDER may,      at its option, rescind this CONTRACT by serving upon the BUYER a written      notice or a facsimile notice of rescission confirmed in      writing. |
|--------|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (e)   | In      the event of such cancellation by the BUILDER of this CONTRACT due to the      BUYER’s default as provided for in paragraph 1 above, the BUILDER shall be      entitled to retain and apply the instalments already paid by the BUYER to      the recovery of the BUILDER’s loss and damage including, but not being      limited to, reasonable estimated profit due to the BUYER’s default and the      cancellation of this CONTRACT and at the same time the BUILDER shall have      the full right and power either to complete or not to complete the VESSEL      which is the sole property of the BUILDER as it deems fit, and to sell the      VESSEL at a public or private sale on such terms and conditions as the      BUILDER thinks fit without being answerable for any loss or      damage. |
|--------|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| First, | in      payment of all reasonable costs and expenses of the sale of the VESSEL,      including interest thereon at six per cent (6%) per annum from the      respective date of payment of such costs and expenses aforesaid to the      date of sale on account of the BUYER’sdefault. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Second, | if      the VESSEL has been completed, in or towards satisfaction of the unpaid      balance of the CONTRACT PRICE, to which shall be added the cost of all      additional work and extras agreed by the BUYER including interest thereon      at six per cent (6%) per annum from the respective DUE DATE of the      instalment in default to the date of sale, or if the VESSEL has not been      completed, in or towards satisfaction of the unpaid amount of the cost      incurred by the BUILDER prior to the date of sale on account of      construction of the VESSEL, including work, labour, materials and      reasonably estimated profit which the BUILDER would have been entitled to      receive if the VESSEL had been completed and delivered plus interest      thereon at six per cent (6%) per annum from the respective DUE DATE of the      instalment in default to the date ofsale. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Third, | the      balance of the proceeds, if any, shall belong to the BUYER, and shall      forthwith      be paid over to the BUYER by theBUILDER. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 1.   | RESPONSIBILITY OF THE      BUYER |
|----------------|----------------------------------|

|   | (a)   | furnished      the BUYER with the time schedule referred to above, two (2) months prior      to installation of the BUYER’S SUPPLIESand |
|--------|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b)   | given      the BUYER written notice of any delay in delivery of the BUYER’S SUPPLIES      and the necessary document or advice for such supplies as soon as the      delay occurs which might give rise to a claim by the BUILDER under this      Paragraph. |
|--------|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | RESPONSIBILITY OF THE      BUILDER |
|----------------|------------------------------------|

----

----

| 1.   | APPOINTMENT OF THE      ARBITRATOR |
|----------------|------------------------------------|

| 2.   | LAWS      APPLICABLE |
|----------------|----------------------|

| 3.   | PROCEEDINGS |
|----------------|-------------|

|   | (a)   | The      claimant in the arbitration to serve points of claim within fourteen (14)      days of the appointment of thearbitrator. |
|--------|-----------------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (b)   | The      respondent in the arbitration to serve points of defence and points of      counterclaim, if any, within fourteen (14) days  thereafter. |
|--------|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c)   | The      claimant to serve points of reply and defence to counterclaim, if any,      within seven (7) days thereafter and the hearing of the arbitration to      commence within twelve (12) weeks of the appointment of the      arbitrator. |
|--------|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4.   | ALTERATION OF DELIVERY      OF THE VESSEL |
|----------------|-------------------------------------------|

----

----

| 1.   | TAXES |
|----------------|-------|

| 2.   | DUTIES |
|----------------|--------|

----

| 1.   | PATENTS, TRADEMARKS      AND COPYRIGHTS |
|----------------|-----------------------------------------|

| 2.   | RIGHTS TO THE      SPECIFICATIONS, PLANS, ETC. |
|----------------|------------------------------------------------|

----

----

|   | To      the BUILDER: | DAEHAN      SHIPBUILDING CO., LTD.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                 | 748,      Woodoo-Ri, Dolsan-Up, Yeosu City, Jeonnam, Koreac/o      3rd Floor, Moodeung Building, 20-2, 2-Ga, Gumnam-Ro,Dong-Gu,      Gwangju, Korea Attn:  [                          ] Tel      :       [                          ] Facsimile      :       [                          ] E-mail      :       [                          ]  |
|   |                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   | To      the BUYER :  | GOLDEN      OCEAN GROUP LIMITED                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                 | Par-la-Ville      Place, 14 Par-la-Ville Road, Hamilton HM 08,Bermudac/o      GOLDEN OCEAN MANAGEMENT ASIA PTE LTD.168      Robinson Road, #24-01 Capital Tower, Singapore 068912 Attn:  [                          ] Tel      :       [                          ]Facsimile:       [                          ]E-mail:       [                          ] |

----

----

----

| BUYER                           |                               | BUILDER                   |   |
|---------------------------------|------------------------------------|---------------------------|--------|
|                            |                               |                      |   |
| For      and on behalf of       |                               | For      and on behalf of |   |
|                            |                               |                      |   |
| GOLDEN      OCEAN GROUP LIMITED | DAEHAN      SHIPBUILDING CO., LTD. |

| By:    |                                                                                        | By:    |                                                                                         |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Name:  | Anders      Zorn                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Name:  | Min      Ho Song                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Title: | Attorney-in-fact                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Title: | Attorney-in-fact                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

| WITNESS:  |                                                                                       | WITNESS:  |                                                                             |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Very      truly yours,                         |
|--------|------------------------------------------------|
|   | For      and on behalf ofXXXXXX      Bank      |
|   | By:__________________________Name:Title:  |

----

|   | Very      truly yours,                   |
|--------|------------------------------------------|
|   | For      and on behalf of BUYER          |
|   | By:__________________________Name:Title: |

----

| (I) | Golden      Ocean Group Ltd., a corporation incorporated and existing under the laws      of Bermuda having its registered office at Par-la-Ville Place, 14      Par-la-Ville Road, Hamilton HM 08, Bermuda (the “BUYER”),      and |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (II) | Daehan      Shipbuilding Co. Ltd. a corporation incorporated and existing under the      laws of the Republic of Korea (the “BUILDER”) having its      registered office at 748, Woodoo-Ri, Dolsand-Up, Yeosu City, Jeonnam,      Korea, and |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (III) | KTL      Belgravia [  ] Inc, a corporation incorporated and existing      under the laws of Liberia having      its registered office at 80 Broad Street, Monrovia, Liberia (the “SUBSTITUTED      BUYER”). |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.1 | Under      an agreement made on 30 November 2006 between the Buyer and the Builder      the Builder has agreed to construct a 170,500 dwt class bulk carrier      vessel for the Buyer with hull no. HN-101[  ] (the “Shipbuilding      Contract”). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.2 | Under      Article XIV of the Shipbuilding Contract the Buyer is permitted to      transfer the Shipbuilding Contract, with the consent of the      Builder. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.3 | The      Buyer wishes to transfer its rights and obligations under the Shipbuilding      Contract to the Substituted Buyer which is a company in the same group as      the Buyer, and the Builder has agreed to this on the condition that the      Buyer provides the Builder with a performance guarantee pursuant to      Article X, clause 9, guaranteeing the performance of the Substituted Buyer      under the ShipbuildingContract. |
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| 1.4 | In      accordance with recital (C) herein, the terms of Article XIV of the      Shipbuilding Contract and the terms hereof the Builder has agreed to      release and discharge the Buyer of its rights and obligations under the      Shipbuilding Contract. The Substituted Buyer has agreed to assume, the      obligations of the Buyer to the Builder under the Shipbuilding Contract,      and the Buyer has agreed to release and discharge the Builder from its      rights and obligations to the Buyer under the Shipbuilding Contract, in      each case on the terms and subject to the conditions contained in this      Agreement. |
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| 1.5 | Pursuant      to Article X, Clause 8 of the Shipbuilding Contract a refund guarantee has      been issued by XXXXXX Bank (the “Refund Guarantor”) in      favour of the Buyer or its nominee (the “Refund Guarantee”). The      nomination and novation under the Shipbuilding Contract is subject to all      rights of the Buyer under a new refund guarantee on the same terms as the      Refund Guarantee (the “Substituted Refund Guarantee”)      is issued to the Substituted Buyer as set out below as soon as the      existing Refund Guarantee has been discharged by the Substituted Buyer’s      bank by SWIFT as set outbelow. |
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| (i) | The      Substituted Buyer agrees with the Builder to assume all the rights and      obligations of the Buyer to the Builder under or arising from the      Shipbuilding Contract, (except any rights or obligations that have been      fully and properly performed prior to the Novation      Date); |
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| (ii) | the      Buyer releases and discharges the Builder from all its rights and      obligations and liability to the Buyer under the Shipbuilding Contract and      from all (if any) liability to the Buyer arising from any act or omission      of the Builder in the performance of all or any of the Builder’s      obligations to the Buyer under the Shipbuilding      Contract; |
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| (iii) | on      the condition that the Buyer has issued a performance guarantee in favour      of the Builder as set out in Article X, Clause 9 of the Shipbuilding      Contract prior to the entering into of this Novation Agreement, the      Builder releases and discharges the Buyer from all its rights and      obligations and liability to the Builder under the Shipbuilding Contract      and from all (if any) liability to the Builder arising from any act or      omission of the Buyer in the performance of all or any of the Buyer’s      obligations to the Builder under the Shipbuilding      Contract; |
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| (iv) | the      Builder agrees to ensure that the Substituted Refund Guarantee is issued      in writing to the Substituted Buyer as soon as possible after the      Substituted Buyer’s bank, the XXXXXX, having confirmed by swift message to      the Builder’s bank, XXXXXX Bank (swift address XXXXXXXXXXX) that the      existing Refund Guarantee is considered null and void;      and |
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| (iv) | the      Builder agrees with the Substituted Buyer to be bound by its rights and      obligations under the Shipbuilding Contract (to the extent that they have      not been fully and properly performed prior to the Novation Date) in every      way as if the Substituted Buyer had been a party to the Contract in place      of theBuyer. |
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| (i) | any      obligations of the Buyer to the Builder pursuant to the terms of the      Shipbuilding Contract which are not performed as at the Novation Date      shall not be deemed to be      waived by the Builder by virtue of the novation of the Shipbuilding      Contract pursuant to the terms of this Agreement, but shall be performed      by the Substituted Buyer; |
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| (ii) | any      obligations of the Builder pursuant to the terms of the Shipbuilding      Contract which are not performed as at the Novation Date shall not be      deemed to be waived by the Substituted Buyer by virtue of the novation of      the Shipbuilding Contract pursuant to the terms of this Agreement, but      shall be performed by the Builder. |
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